Magnetic Resources Expands Lady Julie Gold Resource with Stellar Metallurgical Gains

Resource Expansion and Drilling Success

Magnetic Resources NL (ASX: MAU) has reported a substantial increase in the mineral resource estimate for its flagship Lady Julie North 4 (LJN4) gold deposit in Western Australia's Laverton region. The updated resource now stands at 23.6 million tonnes grading 2.04 grams per tonne gold, equating to approximately 1.55 million ounces of gold. This marks a significant step up from previous estimates, driven by a sustained high-grade drilling campaign that has extended mineralisation both laterally and at depth.

Recent diamond drilling has delineated three distinct high-grade cores within the deposit, with some intersections returning exceptional grades such as 14 meters at 8.8 g/t and 9 meters at 10.77 g/t from depths exceeding 440 meters. Importantly, the mineralisation remains open at depth, indicating further upside potential as deeper drilling continues.

Metallurgical Breakthroughs Bolster Project Economics

Complementing the resource growth, Magnetic Resources has achieved outstanding metallurgical recoveries from the LJN4 deposit. Testwork on deep ultramafic-hosted mineralisation demonstrated a remarkable 97.5% gold recovery using an optimized flotation and fine grinding circuit, significantly higher than earlier results. This exceptional recovery is particularly encouraging given the complex mineralogy and depth of the orebody.

The high recovery rates, combined with a consistent overall gold recovery of 92% across the project, suggest that the processing plant can be designed with reduced capital and operating costs. The finer grind size required for flotation liberation also implies potential savings in energy consumption and mill sizing, further enhancing project viability.

Advancing Feasibility and Mining Strategy

In parallel with resource and metallurgical advancements, Magnetic Resources is progressing a scoping study for a combined open pit and underground mining operation. The study envisions an underground mine producing 550,000 tonnes per annum of higher-grade ore, supplementing the open pit, to deliver a total annual gold output of approximately 150,000 ounces over an eight-year mine life.

The concurrent mining approach aims to maximise value by accessing deeper high-grade zones while minimising disruption to open pit operations. Detailed design and access planning are underway, with underground development expected to commence in late 2025. This integrated strategy reflects the company's confidence in the deposit's continuity and economic potential.

Broader Exploration and Regional Growth

Beyond LJN4, Magnetic Resources continues to advance exploration across its extensive Laverton tenement package, including the Lady Julie Central, Hawks Nest, and Mt Jumbo projects. The company has completed extensive drilling programs totaling over 156,000 meters, with numerous significant gold intersections reported. Additionally, Magnetic has acquired new tenements and is actively evaluating nickel-copper-PGE targets in the Julimar region, signaling a diversified growth strategy.

Management is engaged in ongoing discussions with financiers and potential mining partners to secure funding and expertise for project development. The combination of robust resource growth, metallurgical improvements, and strategic exploration positions Magnetic Resources well for the next phase of value creation.

Outlook and Market Implications

Magnetic Resources’ latest quarterly report underscores the company's transition from exploration to development, with tangible milestones achieved in resource expansion, metallurgy, and mining studies. The strong grades and recoveries at LJN4 enhance the project's attractiveness amid a supportive gold price environment. However, pending assay results from recent drill holes and the outcomes of ongoing feasibility studies will be critical in refining the project’s economic model and financing plans.